When I posted the article on What does Alpha & Beta means in Stock Market. As a result, I got responses from many users to share the list of High Beta Stocks Listed on NSE for investment in 2022. Before we go through the list of High Beta Stocks for the Year 2022 let’s recap What do Beta Stocks mean?
High Beta Stocks
It is true that stock investing is a risky thing. But what is there in life that isn’t fraught with danger? Let’s get one thing straight. Only when money is invested then only it grows. There is no other option. Naturally, there is a risk factor involved when you entrust your money to someone else in order for it to grow. You may not receive your funds at all, or you may receive lower-than-expected returns.
So, will this deter you from investing? No. You continue to invest in instruments that are less risky. Alternatively, you could diversify with caution. The same is true for stocks. While some are extremely volatile, others may not be. Beta is a risk-adjusted metric that is used to determine the risk associated with a stock.
The volatility of an asset or portfolio in comparison to the overall market is measured by beta, which can assist investors in determining how much risk they are willing to take in exchange for a certain return. The default beta value is one, which indicates that the security’s price moves in lockstep with the market.
A positive beta stock moves in the same direction as the index. A negative value indicates that the stock is moving in the opposite direction of the market, i.e., rising when the market is falling and vice versa. A beta rating greater than one indicates that the stock is more volatile than the market as a whole. If the value of beta is 1.1. The share price, for example, is likely to fluctuate by 10% more than the index. A value less than one indicates that the stock price fluctuates less frequently.
Also Read What is Bonus Share?
List of High Beta Stocks NSE in 2022
To make the 50-stock index investible and replicable, criteria such as turnover and market capitalization are used when selecting securities. Here is the list of High Beta Stock listed on NSE for the year 2022:
|AU Small Finance Bank Ltd.||FINANCIAL SERVICES|
|Adani Enterprises Ltd.||METALS|
|Adani Ports and Special Economic Zone Ltd.||SERVICES|
|Apollo Tyres Ltd.||AUTOMOBILE|
|Ashok Leyland Ltd.||AUTOMOBILE|
|Axis Bank Ltd.||FINANCIAL SERVICES|
|Bajaj Finance Ltd.||FINANCIAL SERVICES|
|Bajaj Finserv Ltd.||FINANCIAL SERVICES|
|Bandhan Bank Ltd.||FINANCIAL SERVICES|
|Bank of Baroda||FINANCIAL SERVICES|
|Bharat Heavy Electricals Ltd.||INDUSTRIAL MANUFACTURING|
|Can Fin Homes Ltd.||FINANCIAL SERVICES|
|Canara Bank||FINANCIAL SERVICES|
|Cholamandalam Investment and Finance Company Ltd.||FINANCIAL SERVICES|
|Federal Bank Ltd.||FINANCIAL SERVICES|
|Godrej Properties Ltd.||CONSTRUCTION|
|Grasim Industries Ltd.||CEMENT & CEMENT PRODUCTS|
|Hindalco Industries Ltd.||METALS|
|Hindustan Copper Ltd.||METALS|
|Housing Development Finance Corporation Ltd.||FINANCIAL SERVICES|
|ICICI Bank Ltd.||FINANCIAL SERVICES|
|IDFC First Bank Ltd.||FINANCIAL SERVICES|
|Indiabulls Housing Finance Ltd.||FINANCIAL SERVICES|
|Indiabulls Real Estate Ltd.||CONSTRUCTION|
|IndusInd Bank Ltd.||FINANCIAL SERVICES|
|JSW Steel Ltd.||METALS|
|Jindal Steel & Power Ltd.||METALS|
|L&T Finance Holdings Ltd.||FINANCIAL SERVICES|
|LIC Housing Finance Ltd.||FINANCIAL SERVICES|
|Mahindra & Mahindra Financial Services Ltd.||FINANCIAL SERVICES|
|Mahindra & Mahindra Ltd.||AUTOMOBILE|
|Manappuram Finance Ltd.||FINANCIAL SERVICES|
|Muthoot Finance Ltd.||FINANCIAL SERVICES|
|National Aluminium Co. Ltd.||METALS|
|Nippon Life India Asset Management Ltd.||FINANCIAL SERVICES|
|Piramal Enterprises Ltd.||FINANCIAL SERVICES|
|Power Finance Corporation Ltd.||FINANCIAL SERVICES|
|RBL Bank Ltd.||FINANCIAL SERVICES|
|Shriram Transport Finance Co. Ltd.||FINANCIAL SERVICES|
|State Bank of India||FINANCIAL SERVICES|
|Steel Authority of India Ltd.||METALS|
|Tata Chemicals Ltd.||CHEMICALS|
|Tata Motors Ltd.||AUTOMOBILE|
|Tata Power Co. Ltd.||POWER|
|Tata Steel Ltd.||METALS|
|Vodafone Idea Ltd.||TELECOM|
|Zee Entertainment Enterprises Ltd.||MEDIA ENTERTAINMENT & PUBLICATION|
Stock prices of companies with betas greater than one have the potential to rise at a faster rate than market indices. The inverse is also true, and as a result, an investor must exercise extreme caution when investing in such stocks. Understand your risk tolerance, research markets, and companies, and only then should you consider investing.